Avensys (AVNY) 10QSB Quarterly report (small business)

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 10QSB

[X]	Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
	FOR THE QUARTERLY PERIOD ENDEDMARCH 31, 2002
	OR
[   ]	Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
	For the transition period from to

COMMISSION FILE NUMBER 333-46886

KEYSTONE MINES LIMITED
(Exact name of registrant as specified in its charter)

NEVADA	88-0467845
(State of other jurisdiction	(IRS Employer Identification
of incorporation or organization)	Number)

1040 West Georgia
Suite 1160
Vancouver, British Columbia
Canada V6E 4H1
(Address of principal executive offices)

(604) 605-0885
(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes [ x ] No [   ]

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of March 31, 2002: 6,011,198

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PART I.

ITEM 1. Financial Statements

KEYSTONE MINES LIMITED (AN EXPLORATION STAGE ENTERPRISE) BALANCE SHEETS
					March 31, 2002 (Unaudited)		June 30, 2001
ASSETS
	CURRENT ASSETS
		Cash		$	19,261	$	48,890
			Total Current Assets		19,261		48,890
	OTHER ASSETS
		Mining claims			27		27
			Total Other Assets		27		27
		TOTAL ASSETS		$	19,288 ===========	$	48,917 ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
	CURRENT LIABILITIES
		Accounts payable		$	-	$	335
		Related party payables			1,272		2,437
			Total Current Liabilities		1,272		2,772
	COMMITMENTS AND CONTINGENCIES				-		-
	STOCKHOLDERS' EQUITY
		Common stock, 100,000,000 shares authorized, $0.00001 par value; 6,011,198 shares issued and outstanding			60		60
		Additional paid-in capital			601,060		601,060
		Deficit accumulated during exploration stage			(583,104)		(554,975)
			Total Stockholders' Equity		18,016		46,145
		TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	19,288 ===========	$	48,917 ===========

See notes to interim financial statements

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KEYSTONE MINES LIMITED (AN EXPLORATION STAGE ENTERPRISE) STATEMENTS OF OPERATIONS
			Three Months Ended March 31, 2002 (Unaudited)		Three Months Ended March 31, 2001 (Unaudited)			Nine Months Ended March 31, 2002 (Unaudited)	Nine Months Ended March 31, 2001 (Unaudited)		From June 26, 2000 (Inception) to March 31, 2002 (Unaudited)
REVENUES			$	-	$	-	$	-	$	-	$	-
EXPENSES
	Consulting services provided by directors			-		-		-		-		498,523
	Mining exploration expense			-		-		-		1,337		4,597
	Legal and accounting			1,823		3,917		8,763		27,644		40,200
	General and administrative			4,810		578		12,446		634		18,499
	Rent			1,614		385		4,736		385		6,574
	Investor relations			-		-		-		-		5,558
	Board of directors' expenses			-		-		-		-		3,939
	Stock transfer agent fees			-		-		25		-		3,075
	Travel			396		-		2,159		-		2,159
		TOTAL EXPENSES		8,643		4,880		28,129		30,000		583,124
LOSS FROM OPERATIONS				(8,643)		(4,880)		(28,129)		(30,000)		(583,124)
OTHER INCOME
	Miscellaneous income			-		20		-		-		20
		TOTAL OTHER INCOME		-		20		-		-		20
LOSS BEFORE INCOME TAXES				(8,643)		(4,860)		(28,129)		(30,000)		(583,104)
INCOME TAXES				-		-		-		-		-
NET LOSS			$	(8,643) =========	$	(4,860) =========	$	(28,129) =========	$	(30,000) =========	$	(583,104) =======
	NET LOSS PER COMMON SHARE, BASIC AND DILUTED		$	nil =========	$	nil =========	$	nil =========	$	nil ========	$	(0.10) =======
	WEIGHTED AVERAGE NUMBER OF COMMON STOCK SHARES OUTSTANDING, BASIC AND DILUTED		$	6,011,198 =========	$	5,458,940 =========	$	6,011,198 =========	$	5,152,980 ========	$	5,622,821 =======

See notes to interim financial statements

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KEYSTONE MINES LIMITED
(AN EXPLORATION STAGE ENTERPRISE)
STATEMENT OF STOCKHOLDERS' EQUITY

Common Stock		Additional Paid-in Capital	Deficit Accumulated During the Exploration Stage	Stock Subscriptions Receivable	Total Stockholders' Equity
Number of Shares	Amount

Issuance of common stock for services and in payment of advances at approximately $0.10 per share	5,000,000	$	50	$	499,950	$	-	$	(795)	$	499,205
Net loss for period ending, June 30, 2000	-		-		-		(498,923)		-		(498,923)
Balance, June 30, 2000	5,000,000		50		499,950		(498,923)		(795)		282
Payment of subscriptions receivable	-		-		-		-		795		795
Sale of common stock for cash at $0.10 per share	1,011,198		10		101,110		-		-		101,120
Net loss for the year ended Ended June 30, 2001	-		-		-		(56,052)		-		(56,052)
Balance, June 30, 2001	6,011,198		60		601,060		(554,975)		-		46,145
Net loss for the nine months ended March 31, 2002	-		-		-		(28,129)		-		(28,129)
Balance, March 31, 2002 (unaudited)	6,011,198 =========	$	60 ======	$	601,060 ======	$	(583,104) =======	$	- ======	$	18,016 =======

See notes to interim financial statements

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KEYSTONE MINES LIMITED (AN EXPLORATION STAGE ENTERPRISE) STATEMENTS OF CASH FLOWS
			Nine Months Ended March, 31 2002 (Unaudited)		Nine Months Ended March, 31 2001 (Unaudited)		From June 26, 2000 (Inception) to March, 31 2002 (Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
	Net loss		$	(28,129)	$	(29,980)	$	(583,104)
	Adjustments to reconcile net loss to cash
	provided (used) in operating activities:
		Increase (decrease) in related party payables		(1,165)		12,752		1,272
		Decrease (increase) in prepaid expenses		-		682		-
		Increase in mining claims		-		(27)		(27)
		Increase (decrease) in accounts payable		(335)		10,950		-
		Payment of expenses from issuance of stock		-		-		499,840
Net cash provided (used) in operating activities				(29,629)		(5,623)		(82,019)
CASH FLOWS FROM INVESTING ACTIVITIES				-		-		-
CASH FLOWS FROM FINANCING ACTIVITIES
	Stock subscriptions paid			-		795		-
	Proceeds from advances			-		-		160
	Issuance of common stock			-		101,120		101,120
Net cash provided (used) by financing activities				-		101,915		101,280
Change in cash				(29,629)		96,292		19,261
Cash, beginning of period				48,890		-		-
Cash, end of period			$	19,261 ===========	$	96,292 ===========	$	19,261 ===========
SUPPLEMENTAL CASH FLOWS DISCLOSURES:
	Interest paid		$	- ===========	$	- ===========	$	- ===========
	Income taxes paid		$	- ===========	$	- ===========	$	- ===========
NON-CASH TRANSACTIONS:
	Stock issued in payment of consulting and other expenses		$	-	$	-	$	499,840
	Stock issued in payment of advances		$	-	$	-	$	133
	Stock issued in payment of mining claims		$	-	$	-	$	27

See notes to interim financial statements

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KEYSTONE MINES LIMITED
(An Exploration Stage Enterprise)
March 31, 2002

NOTES TO INTERIM FINANCIAL STATEMENTS
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1. BASIS OF PRESENTATION

The foregoing unaudited interim financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-QSB and Regulation S-B as promulgated by the Securities and Exchange Commission. Accordingly, these financial statements do not include all of the disclosures required by generally accepted accounting principles for complete financial statements. These unaudited interim financial statements should be read in conjunction with the audited financial statements for the period ended June 30, 2001. In the opinion of management, the unaudited interim financial statements furnished herein include all adjustments, all of which are of a normal recurring nature, necessary for a fair statement of the results for the interim period presented.

The preparation of financial statements in accordance with generally accepted accounting principles requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of the Company's financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions and could have a material effect on the reported amounts of the Company's financial position and results of operations.

Operating results for the three and nine month periods ended March 31, 2002 are not necessarily indicative of the results that may be expected for the year ending June 30, 2002.

F-5

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PART II

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR RESULTS OF OPERATIONS

Financial Condition, Liquidity and Capital Resources

Since inception on June 26, 2000, our Company has been engaged in exploration and acquisition of mineral properties. Our Company's principal capital resources have been acquired through issuance of common stock.

At March 31, 2002, we had positive working capital of $17,989 compared to $46,118 at June 30, 2001. This was due to expenditures in all major categories: legal and accounting, general and administrative and rent

At March 31, 2002, our Company's total assets were $19,288, 99.9% of which was cash. This compares with our Company's assets at March 31, 2001 of $96,318 ($96,291 cash).

At March 31, 2002, our Company's total liabilities decreased to $1,272 from $24,103 at March 31, 2001, primarily reflecting the payment of all debt, loans and expenses from the proceeds of stock issue.

Our Company has not had revenues from inception. Although there is insufficient capital to fully explore and develop its mineral properties, Our Company expects to survive and exploit its resources primarily with funding from sales of its securities and, as necessary, from shareholder loans.

Our Company has no long-term debt and does not regard long-term borrowing as a good, prospective source of financing.

Results of Operations

Our Company posted losses of $28,129 for the nine months ending March 31, 2002. The principal components of the loss were professional expenses and general and administrative expenses.

Operating expenses for the nine months ending March 31, 2002 were equal to losses, $28,129.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on this 29^th day of April, 2002.

KEYSTONE MINES LIMITED
(Registrant)

BY: /s/ Mike Muzylowski
Mike Muzylowski, President, Treasurer,
Chief Financial Officer and a Member of
the Board of Directors.